The Challenges of Using Points in Crypto

Points are often adopted by builders without fully understanding the long-term implications. While points can drive user engagement and revenue without upfront cost, they can lead to a mismatch between user expectations and actual value delivered. Users may focus more on points than other features or rewards, leading to disappointment when the expected airdrop fails to materialize. This can create a toxic community and hinder sustainable growth. Rabbit Hole, for example, experienced user backlash when they removed points, highlighting the deep attachment users had to the points system. Despite its initial appeal and flexibility, the current points meta may not be the best path for sustainable growth in crypto projects.